Do Women-Owned Businesses Need to 'Man Up?'

4/2/2013 12:37PM

The number of women-owned businesses is increasing in the U.S. But two-thirds of them struggle to grow beyond $50,000 — falling significantly behind their male counterparts. Small-business expert Susan Solovic explains why.

This transcript has been automatically generated and may not be 100% accurate.

... I ... we own businesses need to well ... you know man up while the ... man up to make to make themselves at greater success while the numbers ... of the non enterprises is growing the majority really to grow beyond fifty thousand Revenue nuts by one count ... we learn from their male counterparts of the season so make small business expert author of ... the GirlsGuideTo in knowing that this is she's joined us right now they're interesting ... Odyssey ... seen season I'm ... I'm fascinated with the fifty thousand our revenue mark this also mostly entrance like a micro business really women are really struggling when it comes to ... starting businesses even though their eight point three million women owned businesses in this country they generate one point three trillion dollars in revenue ... so you realize that that's really just a very small percentage of women ... who are really growing fact successful sustainable businesses now I know there's no easy answer to this but you probably can point a few key headline things as to why what what holds women back in business from their business owners you know when he actually in my opinion I think it all boils down to money it's that simple ... it's money when it comes to starting businesses because most women start ... on service oriented businesses ... therefore they don't need as much capital start of ... its money were at the way they manage their finances internally and money to build growth capital to grow their companies ... use to Credit dot com recently did a survey and found that women owned businesses ... who are applying for loans ... have a fifteen to twenty percent agreed that greater rejection late rate than their Min counterparts do ... they also found that women have higher operating costs ... said slimmer margins and they also have lower credit risk to know why that is well you know I I mean that I wouldn't ... say in my opinion was thinking if I think one of the things that holds women back when it comes to money and in our society is still a sense that if you're aggressive about making money then that's an imminent that's not a good thing right so ... I use to teach a women's onscreen Oriel course and I would ask the women in the course ... hound MetLife they wanted to go in their own business ... the majority of them would say things I want more balance in my life I want more control of the end product ... really what I have a woman stand up and say I want to make money ... yes that's one thing the second thing is ... they don't really understand how to ... access capital markets in order to grow their business ... we know if you see the businesses that sorta success ... often they are getting equity capital ... women due to go after equity capital only ten percent of women owned businesses obtain venture capital ... so we got organizations like Springborg Enterprises Golden seeds that are trying to train women how to position their businesses and how the kids to ... attract that equity capital ... but it's a lack of savvy than Holt's winning back when it comes to any of the few red shale Sandberg's Book that ... I have read her book and I you know Christmas like everybody read my twenty oh and I bought a condo with early talking to you know speaking from the same page when they need to step up to the plate and then I think women do is they don't step up and become the CEO the lead with their hearts rather than making timely business decisions ... so they're a lot of things that are holding us back sometimes I think we're our own worst enemies ... we really need to understand it's ok to make money I like making money ... it's ok to build successful sustainable businesses it gives women economic freedom and an opportunity to make real choices and allied Sciences and Sullivan thanks much for the past year must take years to the wedding